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Minutes 2014-12-09 ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL TUESDAY, DECEMBER 9, 2014 COUNCIL CHAMBERS, 215 EAST BRANCH STREET ARROYO GRANDE, CALIFORNIA . 1. CALL TO ORDER Mayor Hill called the Regular City Council Meeting to order at 6:04 p.m. 2. ROLL CALL City Council: Council Member Jim Guthrie, Council Member Tim Brown, Council Member Barbara Harmon, Mayor Pro Tern Kristen Barneich and Mayor Jim Hill were present. City Staff Present: Acting City Manager Debbie Malicoat, City Attorney Tim Carmel, Director of Legislative and Information Services/City Clerk Kelly Wetmore, Director of Community Development Teresa McClish, Public Works Director Geoff English and Associate Planner Matt Downing. 3. FLAG SALUTE Members of the El Camino 4-H Group led the Flag Salute. 4. INVOCATION Pastor Randy Ouimette, Saint John's Lutheran Church and Five Cities Fire Authority Chaplain, delivered the invocation. 5. AGENDA REVIEW 5.a. Closed Session Announcements. City Attorney Carmel reported that on Wednesday, December 3, 2014, after meeting in Closed Session regarding the following item, the Council reconvened into open session and announced that the Council discussed the Interim City Manager appointment and individuals that may be qualified for the job and no reportable action was taken: - Public Employee Appointment pursuant to Government Code Section 54957: Title: Interim City Manager 5.b. Ordinances Read in Title Only. Council Member Brown moved, Mayor Pro Tern Barneich seconded, and the motion passed unanimously that all ordinances presented at the meeting shall be read by title only and all further readings be waived. 6. SPECIAL PRESENTATIONS 6.a. Presentation by Visit SLO. Acting City Manager Malicoat announced that the presentation by Visit San Luis Obispo has been rescheduled to the January 13, 2015 City Council meeting. Minutes: City Council Regular Meeting Page 2 Tuesday, December 9, 2014 7. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS Mayor Hill invited public comment. Speaking from the public were Patty Beck, representing Homeless Services, regarding the "50 Now" project, a program to house the top 50 most vulnerable homeless people throughout SLO County; Julie Tacker, who expressed concern regarding issues related to the South San Luis Obispo County Sanitation District and the appointment of incoming officers; Shirley Gibson, who offered best wishes to Mayor Hill and Council Member Barbara Harmon, and announced a book signing at the IOOF Hall; Joe Furino, Arroyo Grande, who thanked Mayor Ferrara and Council Member Costello for their years of service, congratulated Mayor Hill and Council Member Harmon, hoped that the Council would not spend more staff time and money on the City Charter Measure, and expressed concern . regarding the effectiveness of street sweeping operations; and Aleji Davar, Arroyo Grande, who welcomed the new elected officials and encouraged the Council to move forward with City business. 8. CONSENT AGENDA Mayor Hill invited public comment on the Consent Agenda. No comments were received. In response to Council Member Harmon's request to pull Item 8.b. for a separate vote because she was not on the Council in October, City Attorney Carmel noted that by voting on the minutes, the Council is attesting to the City Clerk's documentation of the action taken at the meeting. Action: Council Member Brown moved, and Mayor Pro Tem Barneich seconded the motion to approve Consent Agenda Item 8.a., with the recommended course of action. The motion passed on the following roll-call vote: AYES: Brown, Barneich, Harmon, Guthrie, Hill NOES: None ABSENT: None 8.a. Consideration of Cash Disbursement Ratification. Action: Ratified the listing of cash disbursements for the period November 16, 2014 through November 30, 2014. ITEM PULLED FROM THE CONSENT AGENDA 8.b. Consideration of Approval of Minutes Recommended Action: Approve the minutes of the Special City Council Meeting of October 8, 2014 and the Regular City Council Meeting of October 14, 2014, as submitted. Action: Council Member Guthrie moved to approve the minutes of the Special City Council Meeting of October 8, 2014 and the Regular City Council Meeting of October 14, 2014, as submitted. Mayor Pro Tem Barneich seconded, and the motion passed on the following roll call vote: AYES: Guthrie, Barneich, Harmon, Brown NOES: None ABSENT: None ABSTAIN: Hill Minutes: City Council Regular Meeting Page 3 Tuesday, December 9, 2014 9. PUBLIC HEARINGS 9.a. Consideration of Adoption of Ordinance Amending Chapter 3.46 of the Arroyo Grande Municipal Code Relating to Exemptions and Vacation Rentals and Homestays. Acting City Manager Malicoat presented the staff report and recommended that the Council adopt an Ordinance amending Chapter 3.46 of the Arroyo Grande Municipal Code to provide that the same exemptions that apply to the Transient Occupancy Tax apply to Arroyo Grande Tourism Business Improvement District assessments and amend the definition of "lodging" to include vacation rentals and homestays. Staff responded to questions from Council. Mayor Hill opened the public hearing, and upon hearing no comments, he closed the public hearing. Council Member comments ensued in support of the proposed Ordinance, acknowledgment of the protest letters received; the benefits of the Tourism Business Improvement District, and that the revenue collected benefits all lodging businesses. Council Member Harmon expressed concern about the protest letters, acknowledged they were not present, and stated she would have liked to hear directly from the people who submitted protest letter if their position on the proposed Ordinance had changed. Action: Council Member Brown moved to adopt an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING CHAPTER 3.46 OF THE ARROYO GRANDE MUNICIPAL CODE RELATING TO THE TOURISM BUSINESS IMPROVEMENT DISTRICT LAW". Mayor Pro Tem Barneich seconded, and the motion passed on the following roll call vote: AYES: Brown, Barneich, Guthrie, Hill NOES: Harmon ABSENT: None 9.b. Consideration of a Resolution Adopting a Mitigated Negative Declaration and Approving General Plan Amendment 14-002; Specific Plan Amendment 14-001, Vesting Tentative Tract Map 14-001, and Conditional Use Permit 14-009; Subdivision of Two (2) Commercial Parcels into Forty-one (41) Residential Lots, One (1) Common Area Lot, and Two (2) Commercial Lots; Location: Southwest Corner of East Grand Avenue and South Court land Street; Applicants: MFI Limited and NKT Commercial; Representative: RRM Design Group. Assistant Planner Downing presented the staff report and recommended that the Council adopt a Resolution adopting a Mitigated Negative Declaration and approving General Plan Amendment 14-002, Specific Plan Amendment 14-001, Vesting Tentative Tract Map 14-001; and Conditional Use Permit 14-009. Staff responded to questions regarding the history of the project; clarification regarding the General Plan Amendment; allowable uses on the site; additional traffic on S. Courtland; commercial traffic; fire department approval; water use and impacts; development impact fees; Minutes: City Council Regular Meeting Page 4 Tuesday, December 9, 2014 guest parking; pedestrian connection between the project and the Peoples' Self Help Housing project; and clarification regarding workforce versus attainable housing as defined in the Housing Element. Mayor Hill called for a break at 7:35 p.m. The Council reconvened at 7:45 p.m. Mayor Hill invited the applicants to address the Council. Debbie Rudd from RRM Design Group, representing the applicant, provided an overview of the project including an overview of the project timeline and public meetings held; site context; site plan; providing viable commercial along E. Grand Avenue; providing attainable housing; areas of concern expressed by the Architectural Review Committee, Traffic Commission, and Planning Commission that have been addressed in the project, including parking requirements and proposed alternatives; architectural renderings of the proposed project; E. Grand Avenue access to the commercial component; fencing design; Court land Street Residential access; lighting throughout the development; adding an option for a play structure in the neighborhood green area; an overview of the project benefits; and requested additional direction from the Council regarding parking, Grand Avenue access, and the play structure. Nick Tompkins, applicant, provided a business and family background; projects in Arroyo Grande from 2007 to today, reviewed previous proposals submitted; stated the site is not viable for increased retail use or a large commercial center; stated this project could fill in existing commercial vacancies along E. Grand Avenue; requested approval of the proposed mixed use project, stating this project would have the lowest traffic impact for S. Court land. Council questions ensued regarding delivery truck access; shortening the timeline required to build the commercial component; restaurant square footage; housing with deed restrictions requiring owner occupied units for first year to encourage home ownership; the proposed Homeowners Association and maintenance by a professional management company; hours for loading; additional parking spaces on S. Court land; and street width as it relates to bike lanes, parking and a sidewalk. Mayor Hill opened the public hearing. Speaking from the public were Aaron Henkel, Arroyo Grande, who expressed concerns about delays in the development of the commercial component, width of bike lanes; and turning pockets; John Mack, Arroyo Grande, expressed concerns about lack of neighborhood involvement, reviewed prior concept plan for the site, favored commercial development on the site, provided suggestions for mixed uses in the Gateway District, opposed high density residential separated by a fence with commercial, lack of transition between the residential and commercial components, no pedestrian pathways, not enough parking, opposed architecture and style of residential component, lacks neighborhood services, and urged a continuance; Patty Welsh, Arroyo Grande, spoke in opposition to the proposed project stating it does not meet the General Plan, that it is a commercial corridor not residential, expressed concerned with fire and emergency access, traffic through Berry Gardens, parking, HOA fees, and fencing; LeAnn Akins, Arroyo Grande, expressed concerns about the residential component as it relates to attainability and affordability; Steve Hollister, spoke in support of the proposed project, stated it mitigates traffic impacts to Berry Gardens with a smaller commercial component; Linda Drummond, spoke in opposition to the project expressing concerns with current traffic flow through Berry Gardens, generating more traffic through the neighborhood, water impacts, and traffic circulation; Chris Richardson, spoke in Minutes: City Council Regular Meeting Page 5 Tuesday, December 9, 2014 support of the proposed project; Michael Morrow, spoke in support of the proposed project; Shirley Gibson, spoke about Mr. Tompkins and the Rooster Creek project, stating she respects his integrity and quality of his work. Mayor Hill called for a break at 9:20 p.m. The Council reconvened at 9:30 p.m. and resumed the public hearing Cheryl Schweitzerhof, Arroyo Grande, opposed the play structure and expressed concern about parking constraints, lighting and architecture; Glenn Martin, supported development in concept, but expressed concerns about the residential component, favored more commercial, stated parking is an issue, and acknowledged that commercial generates more traffic but advocates more commercial on this site, and commented on delivery trucks; Beatrice Spencer, Arroyo Grande, expressed concern that of the 5 acre parcel, providing only 11,000 square feet of commercial is inadequate, the project should be 2/3 commercial and 1/3 residential as originally proposed, there is a lack of green space within the project, inquired where service trucks would park, and opposed the General Plan Amendment; April McLaughlin, expressed concern about aesthetics and layout of the residential component, and said it should remain as commercial; Julie Tacker, acknowledged the quality developers and that they could do better, that the site should be used for commercial, there should be an Environmental Impact Report for economic impacts of the project, and that more public outreach is needed; Joshua Roberts, project Civil Engineer, responded to comments regarding truck delivery and turning movements, bike lanes, and that traffic stacking on S. Court land would not exceed past the commercial driveway and "stay clear" zone; a Berry Gardens resident commented on traffic impacts, loss of revenue for the City, and the potential for developing the gateway to the City. Upon hearing no further comments, Mayor Hill closed the public hearing. Debbie Rudd, from RRM Design Group provided closing statements in support of the project. Nick Tompkins commented on the wish list for tenants and costs for new construction as it relates to costs for tenants. Council comments ensued as follows: Council Member Harmon supported the commercial component of the proposed project; did not support the residential component as proposed; there are too many exceptions for mitigation; noted there is a paradigm shift for this type of housing; and stated that this is one of the last vacant commercial parcels in the City. Council Member Brown acknowledged previous discussion with Mr. Tompkins about the project; acknowledged improved parking design; the commercial design is good; vertical mixed use is favorable and would like to see more; if commercial component is increased, traffic will increase in the neighborhood; more commercial at front of property; this is a mid block project, not a gateway project; need for transition and buffer between residential and commercial; does not support the proposed General Plan Amendment; there is a need for more connectivity and pathways within the project; and could not support the project as proposed. Council Member Guthrie stated there is a lot of history with this parcel; spoke of efforts to create pedestrian friendly projects; previous projects were more intensive traffic generators; supported Minutes: City Council Regular Meeting Page 6 Tuesday, December 9, 2014 the General Plan Amendment; commented on circulation, additional parking in the residential component, architecture, supported zero lot lines; commented on traffic, stated that the play structure should be a Homeowners Association decision; and supported the project as proposed. Mayor Pro Tem Barneich commented on the history of past proposals for the site; noted the six month review of this project; commented that the current General Plan requires all apartments or all commercial at this location; that the developer has put forth immense effort; that the City does not currently provide the type of residential as proposed in this project and the Housing Element encourages all types of housing; that the project is a good compromise; that pedestrian connectivity can be pursued; recommended that a three year timeline be required to build out the commercial component; supported the proposed architecture, noting that Grand Avenue is different than the Village; favored the driveway into the commercial component from Grand Avenue, and supported the project as proposed. Mayor Hill referred to the General Plan Amendment, noted this was one of the last commercial parcels in the City; favored buildings facing Grand Avenue, stated that more commercial is needed, commented that this project is a commercial veneer in front of high density residential; may have supported a smaller market project; expressed concern with traffic, noting that if there were more commercial, traffic would go toward Grand Avenue and not Berry Gardens; acknowledged the need to revitalize the commercial corridor in the City; that 60% of the site should be commercial with 40% residential; that more planning is needed to mitigate traffic and water impacts; that the negatives outweigh the positives and he could not support the project as proposed. Mayor Hill noted that Council policy requires a unanimous vote to continue the meeting past 11:00 p.m. Action: Council Member Brown moved to continue the meeting past 11:00 p.m., Council Member Harmon seconded, and the motion passed by voice vote. In response to concerns expressed by Mayor Pro Tern Barneich, discussion ensued regarding the desired time for ending the meeting. Action: Council Member Harmon moved to continue the meeting past 11:00 p.m. and to end the meeting no later than 12:00 a.m. Council Member Brown seconded, and the motion passed unanimously by voice vote. Action: Council Member Brown moved to take tentative action to deny the project without prejudice and direct staff to bring back a supporting Resolution. Council Member Harmon seconded, and the motion passed on the following roll call vote: AYES: Brown, Harmon, Hill NOES: Guthrie, Barneich ABSENT: None 10. CONTINUED_BUSINESS None. Minutes: City Council Regular Meeting Page 7 Tuesday, December 9, 2014 11. NEW BUSINESS 11.a. Consideration of Consultant Services Contract for City Manager Recruitment. Acting City Manager Malicoat presented the staff report and recommended that the Council approve and authorize the Mayor to execute a consultant services agreement with Peckham & McKenney to provide recruitment services for the position of City Manager. Staff responded to questions from Council. Mayor Hill invited public comment. No public comments were received. Action: Council Member Harmon moved to approve and authorize the Mayor to execute a consultant services agreement with Peckham & McKenney to provide recruitment services for the position of City Manager with the added condition that a background check be conducted on all finalists. Council Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: Harmon, Guthrie, Brown, Barneich, Hill NOES: None ABSENT: None 11.b. Consideration of Modifications to Invocation Policy. City Attorney Carmel presented the staff report and recommended that the Council provide direction to staff on modifications to the City's invocation policy. Mayor Hill invited public comment. Speaking from the public were David Leidner, Atheist United of San Luis Obispo, who requested the Council eliminate invocation and maintain neutrality; Paul Rinzler, Arroyo Grande, regarding the purpose of an invocation; Peggy Koteen, San Luis Obispo, requested Council discontinue invocation; George Garrigues, Atheist United of San Luis Obispo, opposed religious invocation at government meetings; Robin Rinzler, requested invocations be discontinued. No further public comments were received. Action: Council Member Guthrie moved to direct staff to revise the policy to provide for a moment of silence at the beginning of the meeting. Mayor Pro Tern Barneich seconded, and the motion passed on the following roll call vote: AYES: Guthrie, Barneich, Hill NOES: Harmon, Brown ABSENT: None 11.c. Consideration of Appointments of Council Members to Regional and Local Boards, Commissions, Committees and Subcommittees. City Clerk Wetmore presented the staff report and recommended that the Council make new appointments to those regional and local boards, commissions, and committees with Council representation, and authorize the City Clerk to update FPPC Form 806 (Agency Report of Public Official Appointments) for posting on the City website. Minutes: City Council Regular Meeting Page 8 Tuesday, December 9, 2014 The following appointments to regional boards, commissions, and committees were discussed, assigned, and/or reaffirmed: AGENCY PRIMARY ALTERNATE South County Area Transit(SCAT) Jim Guthrie Tim Brown Staff Representative: City Manager Council of Governments/ Jim Guthrie Jim Hill Regional Transit Authority (SLOCOG/RTA) Staff Representative: Community Development Director City Selection Committee (Mayors) Jim Hill Kristen Barneich Staff Representative: Not Applicable South San Luis Obispo County Jim Hill Tim Brown Sanitation District(SSLOCSD) Staff Representative: Not Applicable Integrated Waste Management Tim Brown Jim Guthrie Authority Board (IWMA) Staff Representative: Community Development Director Zone 3 Water Advisory Board Kristen Barneich Jim Hill Staff Representative: Community Development Director County Water Resources Barbara Harmon Kristen Barneich Advisory Committee (WRAC) Staff Representative: Community Development Director Economic Vitality Corporation Tim Brown Jim Guthrie (EVC) Staff Representative: City Manager/ Associate Planner Air Pollution Control District Barbara Harmon Tim Brown Board (APCD) Staff Representative: Not Applicable Minutes: City Council Regular Meeting Page 9 Tuesday, December 9, 2014 AGENCY PRIMARY ALTERNATE California Joint Powers Insurance Jim Guthrie Staff Representative Authority (CJPIA) Jim Hill Staff Representative: City Manager/ Human Resources Manager Five Cities Fire Authority Barbara Harmon Tim Brown Staff Representative: City Manager Audit Committee Jim Hill Jim Guthrie Staff Representative: Administrative Services Director Homeless Services Coordinating Council Kristen Barneich Tim Brown Staff Representative: City Manager Brisco/Halcyon Interchange Subcommittee Jim Hill N/A Staff Representative: Community Jim Guthrie Development Director Tourism Committee Jim Guthrie Kristen Barneich Staff Representative: Associate Planner/ Recreation Services Director Oversight Board Jim Hill Tim Brown Staff Representative: City Manager Mayor Hill invited public comment. No public comments were received. Action: Council Member Brown moved to make appointments to those regional and local boards, commissions, and committees with Council representation, and authorize the City Clerk to update FPPC Form 806 (Agency Report of Public Official Appointments) for posting on the City website. Mayor Pro Tem Barneich seconded, and the motion passed on the following roll call vote: AYES: Brown, Barneich, Harmon, Guthrie, Hill NOES: None ABSENT: None 11.d. Consideration of an Ordinance Approving the First Amendment to Development Agreement 09-002 to Modify the Legal Description of the Property. Community Development Director McClish presented the staff report and recommended that the Council introduce an Ordinance approving the First Amendment to the Development Agreement 09-002 to modify the Legal Description of the Property. Mayor Hill invited public comment. No public comments were received. Minutes: City Council Regular Meeting Page 10 Tuesday, December 9, 2014 Action: Council Member Brown moved to introduce an Ordinance entitled: "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 09-002 TO MODIFY THE LEGAL DESCRIPTION OF THE PROPERTY". Council Member Guthrie seconded, and the motion passed on the following roll call vote: AYES: Brown, Guthrie, Harmon, Barneich, Hill NOES: None. ABSENT: None 12. COUNCIL COMMUNICATIONS Mayor Pro Tern Barneich requested that staff contact Peoples' Self Help Housing regarding the smoking and parking issues on S. Court land, and also announced that the Homeless Services Oversight Council is having a drive and that there is a collection barrel at City Hall for donating household items to help the homeless as part of the 50 Now Project. Council Member Harmon requested that vehicle speed through Berry Gardens be monitored by the Police Department. Mayor Hill announced that citizens interested in service on City Commissions, Committees, or Boards can fill out an application online. 13. STAFF COMMUNICATIONS , None. 14. COMMUNITY COMMENTS AND SUGGESTIONS Kevin McCarthy, Arroyo Grande, referred to speeding and running through stop signs at the corner of Nelson and Bridge Streets, as well as Nelson and Mason Streets, and requested the Police Department start enforcing speed limits in these areas. 15. CLOSED SESSION: None. 16. ADJOURNMENT Mayor Hill adjourned the meeting at 11:58 p.m. c /)________Th 61 m Hill, Mayor ATTEST: / / / �aticcene_ Kelly W-tm./e, City Clerk (Approved at CC Mtg/- (3-,920(5 )